A Liquid Dialog Box is one that can appear in three modes:
As a regular non-modal dialog
As a docked pane
In a short version, as a docked toolbar (top-docked)
To change the docking, right-click on the dialog pane and choose the docking mode:
Figure 1. Change Liquid Dialog Docking
Currently there are three liquid dialogs: Insert Element Dialog, Element Attributes Dialog, and Find&Replace Dialog. For example, here are the three appearances of the Insert Element Dialog:
Figure 2. Undocked Insert Element Dialog Box
Figure 3. Right-docked Insert Element Dialog Box
Figure 4. Top-Docked Insert Element Dialog
When you make a selection, the docked Insert Element Dialog is replaced with the Wrap Into Element Dialog.